Taxes on Personal Income

Tipping points

When your total income reaches certain thresholds it tips any extra income into a tax band where a higher rate of tax is charged. This happens at several points, such as at £100,000, when personal allowances begin to be withdrawn and at £50,000, when child benefit starts to be clawed back. If your total income in this tax year or the next year is expected to hover around one of those tipping points, you could save money by moving income or deductions from one year to the other. Read More

Give & Save

Giving to charity under Gift Aid can result in a win/win for both the donor and the charity.

If your total income is above the higher rate threshold (£42,385 for 2015/16), making a Gift Aid donation will reduce your tax bill for the year in which the donation is made. However, you can shift the tax benefit of that gift back one year if the gift precedes the date when you file your tax return for the earlier tax year. Read More